One of the go-to fixes is moving to centralized procurement. Meaning one location retains control over most, if not all, of the organization’s purchasing decisions.
The problem with decentralized procurement is each location has its own purchasing process. The result is there are more contracts to monitor, RFP/RFQs to issue, and prices to negotiate. Not to mention you risk uncontrolled spend, and having non-procurement-experts make critical purchases.
Of course, the appeal of consolidating is that you get all those POs and data points to one central location. Still, many hesitate to make the switch, wary that the downside won’t be worth it. If you’re unsure which purchasing structure is right for your organization, keep reading. This article covers the pros and cons of both, and why you may not need to choose one or the other after all.